Implement
Private Institutions: Draft Food Service Management Contracts
- Private Institution
- FSMC-Operated
Introduction
Once a private institution selects a food service management company, the parties negotiate and enter a food service contract. This contract is a crucial legal tool for formalizing the parties’ commitments and translating values into clear, actionable requirements for values-based procurement. This stage explains how to incorporate values-based procurement requirements into the food service contract, including how to:
- Address the wide range of requirements, specifications, and contract provisions useful in establishing a values-based procurement program.
- Ensure clarity and transparency regarding the institution’s expectations and the management company’s obligations in values-based food operations.
- Strike an appropriate balance between mandating specific requirements and allowing flexibility to adapt to changing circumstances.
Keep In Mind:
A food service contract with a management company will cover a range of requirements, specifications, and provisions. This chapter does not detail how to create an entire food service contract but instead focuses on how values-based procurement requirements can be incorporated into the food service contract. The institution should consult their own legal team to ensure that the contract is in compliance with all applicable rules.
This stage explains how to incorporate values-based procurement into a food service contract to facilitate effective implementation, accountability, and enforcement. This contract language will look very similar to that included in the RFP. The model recommendations below offer guidance, language, alternatives, and examples for a private institution wanting to prioritize values-based procurement in its food service contract. Note that there are limited real-world examples in this stage because private contracts are not often publicly available.
When developing a food service contract that incorporates values-based procurement, an institution should consider three key questions:
- Who are the parties in a food service contract?
- Why is it important to include values-based procurement in the contract?
- How can the parties incorporate values-based procurement into the contract?
Guiding Activities
Who Are the Parties in a Food Service Contract?
The two parties to a food service contract are the institution and the food service management company.
Why is it Important to Include Values-Based Procurement in the Food Service Contract?
When an institution hires a management company, it is outsourcing part, or all, of its food service operations, so laying out clear expectations in the food service contract is crucial.
How Can the Parties Incorporate Values-Based Procurement Into the Contract?
When drafting its contract with a food service management company, an institution that prioritizes values-based procurement must be intentional about what is included in the contract to clearly define how its values will be incorporated into procurement practices.